What Davos can not solve | Time

The narrative that companies are the engine of social good is as old as it is attractive.

Once again, the World Economic Forum in Davos, Switzerland, brought together business leaders, politicians and wealthy individuals every year. And yet, every year, the gap between the aspirations expressed at this festival of wealth and the conditions of poverty and inequality that I see through Oxfam's work has become even more glaring.

The best solutions to these problems belong above all to governments: their policies have created this crisis; they can solve the problem by ensuring that businesses and high net worth individuals pay their fair share of tax and then investing that money in ways that reduce inequities, such as free health care and education for all.

But, in the case of business, those who meet in Davos from year to year must recognize that solving the most pressing problems in the world requires a fundamental transformation of the dominant business model, in which the return of shareholders over any other consideration of the company.

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We should get rid of the belief that innovation in business is synonymous with social progress. The "All Shareholder First" model has slowed progress in the fight against global climate degradation and has allowed a growing share of wealth to be allocated to a small global elite at the expense of the majority of citizens – in the United States and around the world. .

This is a concern for businesses, as it is for a strong economy. When, for example, businesses do not pay their fair share of taxes, they undermine the ability of governments to invest in educated and healthy workers, good transportation connections, right, etc. A more unequal world is a riskier world for doing business. According to a study conducted by the World Economic Forum, which organizes the Davos meeting, more than 12,000 men and women from 140 economies have clbadified unemployment and underemployment, as well as the failure of national governance systems, in the foreground.

We need a debate on how to overcome the tensions, trade-offs and conflicting interests between the business elite and the vast majority of our society's population.

Fortunately, enthusiastic proposals to reshape our economic model, particularly in the United States, emanate from worker cooperatives revitalizing struggling communities in cities like Cleveland, New York, or Jackson, as well as employee-owned businesses seeking to Overcoming the short-term pitfall of profit maximization, such as Chobani and Eileen Fisher, who are hard-wired to better align economic viability with social impact. I salute companies that reject regressive tax reforms, which contribute to growing inequality, such as Patagonia, and legislative proposals such as Senator Elizabeth Warren's Accountable Capitalism Act, which proposes radical corporate governance reforms to rebalance asymmetrical power dynamics between US firms and workers.

Large companies must recognize that their policies are often part of the problem. They include employment practices that do not guarantee decent working conditions and a decent salary, tax avoidance strategies that deprive governments of money allowing them to invest in health and universal education, as well as lobbying for companies that undermine the environment or human rights.

We must also talk about rebalancing power. Large companies use their strength to transcend jurisdictions, obscure their property, supply them globally, and monopolize their markets – so that most people feel increasingly helpless as citizens. , workers or consumers. It will take a lot of big business to tackle what people are realizing more and more: that their short-term gains in power and money are also their long-term losses in terms of inequality, political dysfunction and social polarization.

Let's be clear about what Davos is. The whole of Davos has proved to be full of experienced disrupters and innovators. Davos should be a space for creative thinking and daring experimentation.

But Davos should do not to be where political agendas are decided. To do this, we must include all voices, not just the elite. This is not possible in the Swiss Alps.

I'm not naive about the fact that companies are really changing a system that benefits that much. But I can not wait to fool myself.

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